Digital Banking Challenges in Asia
Author(s): Sumeet Kumar Panda, Posted on September 22nd, 2015
What would it take to meet the growing demands of 1.7 billion consumers, for that is the number of digital banking customers whose loyalty and share of wallet would be up for grabs by 2020? In catering to demands of these consumers who are lapping up new technologies at breakneck speed, banks face mammoth challenges ahead. The four roadblocks that top the list are:
- Multichannel Security: Customers around the globe conduct more than 50% of their banking transactions through digital channels. Asian consumer users are rapidly adopting the mobile and internet channels as well. But banking executives are still wary of mobile and social technologies because of security concerns, which can be a major roadblock to progress.
- Winning and Retaining Loyalty: A survey found that an increasing number of Asia-Pacific customers are using multiple institutions to meet their needs. And, findings show that the decline in customer satisfaction could continue to rise if banks don’t close the gap between customer expectations and the way they recognize and reward loyalty.
- Customer Experience (CX): Forrester predicts that in 2015, mobile-powered customer experiences will drive digital transformation across APAC region and 79% of the companies ranked improvements to customer experience as a high/critical priority. Hence, it is imperative to create an integrated solution that delivers a consistent experience.
- DevOps & Automation: With only 5% of fully automated processes and 25% of technology enabled processes, banks still have a long way to go to become agile enough to meet quickly changing needs of the market.
As seen with the trends and roadblocks above, banks have no option but to keep pace with the latest consumer technologies. And, while they determine the best strategies to strike the right balance between physical and digital channels, banks should let customers and business be the cornerstone of their technology decisions.